Inflation has more than half of U.S. households living paycheck-to-paycheck, according to a new report. A study by LendingClub says 58% of Americans live paycheck-to-paycheck. This works out to be more than 150 million adults.
This number is down from 61% as reported in April but up from 54% in May 2021. Any way you look at it, this is still more than half of all American adults, which is concerning.
This number is not limited to lower-income households either. The study found that 30% of those earning $250,000 or more are also going week-to-week.
CNBC says the consumer price index surged by 8.6% in May as compared to a year ago. This is the highest surge since December of 1981. With this surge, many employees took pay cuts as well, meaning what you earn can’t be stretched as far for everyday expenses like food or gas. It also makes it extremely difficult to even set money aside for savings or future expenses.
Many are using credit cards to stay on top of expenses. Credit card balances reached $841 billion in the first three months of 2022. The Federal Reserve has been increasing its target federal funds rate as a result.
How has inflation (and especially gas prices) affected your weekly budget?